Cheap factory labor is phasing out in China, but the country has new assets to offer in terms of labor, says Zhang Juwei, deputy director at the Chinese Academy of Social Science (CASS) in the China Daily. Now, high-qualify labor for a lower price might offer just that opportunity.
The China Daily:
According to Zhang Juwei, deputy director of the Institute of Population and Labor Economicsunder the Chinese Academy of Social Sciences, China’s work force is now attracting overseasenterprises because of its performance-cost ratio rather than just its low cost. “It is the relativelylower cost of higher-quality labor rather than purely the low cost of labor that attracts foreigncompanies now,” he said.
This is because China’s labor market does not offer enough positions for graduates; so withsupply exceeding demand their starting salaries are not much higher than those without college diplomas, he said….
“China needs to seize the opportunity to redefine its position in the global industrial chain, andattract more professional jobs rather than low-paid manufacturing jobs for its laborers,” said Zhang.
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